Citigroup Announces Foreign Exchange Settlements with the U.S. Department of Justice and the Federal Reserve
21 May 2015 - 12:03AM
Business Wire
Citi announced today that it has entered into settlements with
the United States Department of Justice (DOJ) and the Board of
Governors of the Federal Reserve System (Fed) to resolve
investigations into Citi’s foreign exchange business.
The settlement with the DOJ includes a guilty plea by Citicorp,
a subsidiary of Citigroup Inc., to a violation of the Sherman
Antitrust Act and fine of $925 million. The settlement with the Fed
includes the entry of a cease and desist order and a civil money
penalty of $342 million. Citi also announced that it has reached a
separate agreement to settle related private U.S. class action
claims for a payment of $394 million, subject to court
approval.
Citi expects to maintain its licenses and does not expect a
material impact on its operations or ability to serve its clients.
The payments required by each of the settlements Citi announced
today are covered by existing legal reserves and will not require a
charge to earnings in the second quarter of 2015.
Michael Corbat, Chief Executive Officer of Citi, said, “The
behavior that resulted in the settlements we announced today is an
embarrassment to our firm, and stands in stark contrast to Citi’s
values. We began to take action quickly after becoming aware of
these violations of our Code of Conduct and policies, and our
internal investigation has so far resulted in nine terminations and
additional disciplinary actions.
“We will learn from this experience and continue building upon
the changes that we have already made to our systems, controls, and
monitoring processes. Fostering a culture of ethical behavior has
been, and continues to be, a top priority for Citi," Mr. Corbat
concluded.
Citi has now resolved a significant number of its foreign
exchange investigations. In November 2014, Citi announced
agreements to settle investigations into its foreign exchange
business by the U.K. Financial Conduct Authority (FCA), the U.S.
Office of the Comptroller of the Currency (OCC) and the U.S.
Commodity Futures Trading Commission (CFTC). Citi will continue to
further strengthen its compliance and internal controls in
accordance with the terms of these settlements.
About Citi
Citi, the leading global bank, has approximately 200 million
customer accounts and does business in more than 160 countries and
jurisdictions. Citi provides consumers, corporations, governments
and institutions with a broad range of financial products and
services, including consumer banking and credit, corporate and
investment banking, securities brokerage, transaction services, and
wealth management.
Additional information may be found at www.citigroup.com |
Twitter: @Citi | YouTube: www.youtube.com/citi | Blog:
http://blog.citigroup.com | Facebook: www.facebook.com/citi |
LinkedIn: www.linkedin.com/company/citi
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